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Russian President Vladimir Putin and Saudi King Salman bin Abdulaziz Al Saud discussed the current situation on the global hydrocarbons market and confirmed readiness to coordinate activities in the OPEC+ format to support stability of the global oil market. the Kremlin’s press service says on Monday.
`A telephone conversation between Russian President Vladimir Putin and Saudi King Salman bin Abdulaziz Al Saud took place on the initiative of the Saudi side. The current situation on the global hydrocarbons market was thoroughly discussed. The readiness to continue coordination of activities in the OPEC+ format for support of the global oil market stability was affirmed from both sides.` the press service says.
The parties agreed to continue contacts at different levels. the Kremlin said.
The OPEC+ production reduction pact aimed at stabilizing crude prices is valid until the end of March 2020. In total. the countries participating in the agreement (24 crude exporters. including Russia) should reduce production by 1.2 mln barrels per day to the level of October 2018. Under the deal. OPEC and non-OPEC nations are obliged to cut their oil output by 812.000 and 383.000 barrels per day. respectively. Under the deal. Russia and Saudi Arabia. being the biggest oil producers. have the largest quotas for reducing production. They are obliged to cut their oil output by 228.000 and 322.000 barrels per day. respectively.
It was decided at a meeting in early December 2019 to extend production cuts to 1.7 mln barrels per day until March. Russia’s quota was increased from 228.000 to 300.000 barrels per day compared with the level of October 2018. It will expire at the end of the first quarter. OPEC and non-OPEC states participating in the agreement are expected to discuss the future of the deal at a meeting on March 4-6. 2020.
